RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:anaylst StayInvested wrote: They are if you believe that the equity is range bound for a significant period of time. I think last I saw the effective rate on the debentures was what, 13%? I don't know if the debs will accrete at the same rate as the equity if 2021 become their breakout year. Meaning, I think the equity at .14/S may be able to double from the current level by years end, not sure the debs will give you 100% return in the same timeframe.
Fire.DB is a solid investment for reasons you have previously stated, but I think the upside of the equity may be greater in Q3/4 than the debentures.
I don't see how the equity can outperform the debentures since the are convertible at 28.5 cents. If the stock doubles to 28 cents, the debentures will trade at at least 28/28.5 or 98 because of the riskless arb. Also, 16% current yield at 50, plus 22% in accretion debentures.